PeoplesBank pays $16K flood insurance penalty

PEOPLESBANK, A CODORUS VALLEY COMPANY was issued a Consent Order to pay a $16,000 civil money penalty by the FDIC on January 17, 2023. The order was issued after the FDIC determined that the bank had engaged in a pattern or practice of committing violations of the Flood Disaster Protection Act, the notice requirements under section 1364 of the National Flood Insurance Act of 1968, 42 U.S.C. 4104a, and Part 339.7 of the FDIC’s Rules and Regulations, 12 C.F.R. § 339.7, by failing to provide the required notice of force-placed flood insurance to the borrower in 16 instances.